Systems and methods for automatic migration of a consumer between financial accounts

ABSTRACT

Embodiments of the invention provide systems and methods for automatically migrating a consumer from one prepaid financial account to another prepaid financial account based on preset trigger criteria. A prepaid payment device, such as a payroll card, may be issued to the consumer and associated with a prepaid financial account. The prepaid financial account may include a profile for the consumer. The issuer of the prepaid payment device may monitor the account activity and set trigger criteria that control when the consumer is automatically migrated from the current prepaid financial account and which type of new account the consumer is migrated into.

BACKGROUND

The present invention relates to prepaid financial accounts, such aspayroll card accounts, that are preloaded with funds prior to their useby the consumer.

One example of the use of prepaid financial accounts is payroll cardaccounts. There are millions of employees who do not have checkingaccounts at banks but receive pay in the form of payroll checks. To cashthose payroll checks, the employee must typically go to a check cashingservice where a fee is charged to cash the payroll check. This is aparticularly disadvantageous process for the affected employees.

Payroll card accounts were developed to address the problem of payrollchecks. Instead of receiving a payroll check, an employee could receivea payroll card from an employer, which is periodically loaded with fundsreflecting the employee's pay. The employee could then go to a bank oran ATM to withdraw funds, or could use the payroll card like a creditcard to purchase goods and services directly at a merchant.

Prepaid financial accounts are also useful in other contexts. Forexample, a prepaid financial account can be used to control consumerspending. In one instance, a son or daughter may not be entrusted with acredit card account but, for convenience reasons, may be given a prepaidpayment card linked to a prepaid financial account, which may beperiodically loaded with needed funds by a parent. As such, the consumermay avail himself of the conveniences of electronic payment, but islimited to funds that already exist on the account balance.

Although the prepaid financial accounts are effective, a number ofimprovements could be made. For example, different types of prepaidfinancial accounts exist that have different account features andlimitations. For example, some types of prepaid payment cards (and theirassociated accounts) are only capable of being reloaded with funds alimited amount of times, while other types of prepaid payment cards canbe reloaded an unlimited number of times. After the set number ofreloads, a consumer with a limited reload payment card must obtainanother card. Similarly, some prepaid payment cards (and theirassociated accounts) are only capable of being used at an automaticteller machine (ATM), while other prepaid payment cards can conductcredit card transactions. Moreover, some prepaid payment cards (andtheir associated accounts) may be personalized to a consumer while othercards are not. Therefore, it would be desirable to automatically migratea consumer from one prepaid financial account to another prepaidfinancial account based on preset criteria to, for example, anticipatethe consumer's need or reward the consumer's behavior.

Embodiments of the invention address these and other problems,individually and collectively.

BRIEF SUMMARY

The present invention provides for systems and methods that enableautomatic migration of a consumer from one prepaid financial account toanother prepaid financial account based on preset trigger criteria. Aprepaid payment device, such as a payroll card, may be issued to theconsumer and associated with a prepaid financial account. The prepaidfinancial account may include a profile for the consumer. The issuer ofthe prepaid payment device may set trigger criteria that control whenthe consumer is automatically migrated from the current prepaidfinancial account and which type of new account the consumer is migratedinto. The issuer may monitor the account activity and determine when thetrigger criteria have been met. The consumer is then automaticallymigrated from the existing account to a new account, and the consumer'sprofile is transferred to the new account. A new portable consumerdevice associated with the new account is issued to the consumer.Loading of funds into the new prepaid financial account is seamless.

These and other aspects of the invention are described in further detailbelow.

BRIEF DESCRIPTION OF THE FIGURES

FIG. 1 shows a block diagram of a system according to an embodiment ofthe invention.

FIG. 2 shows a flowchart illustrating a method according to anembodiment of the invention.

DETAILED DESCRIPTION

Embodiments of the invention provide systems and methods forautomatically migrating a consumer from one prepaid financial account toanother prepaid financial account based on preset trigger criteria. Aprepaid payment device, such as a payroll card, may be issued to theconsumer and associated with a prepaid financial account. The prepaidfinancial account may include a profile for the consumer that includesinformation such as the consumers name, address, the bank identificationnumber (BIN) of the account, and a direct deposit account (DDA) numberto which a party loading the account may direct funds. The prepaidpayment device may be any suitable portable consumer device used toconduct financial transactions, such as magnetic stripe cards, RFID keyfobs, and the like.

The issuer of the prepaid payment device may set criteria that controlwhen the consumer is automatically migrated from the current prepaidfinancial account and which type of new account the consumer is migratedinto. Criteria for the automatic migration may be based on accountactivity and may include, but are not limited to, the number of timesthe prepaid financial account has been loaded with funds, the totalvolume of funds that have been loaded into the account, and the totalnumber of days that the account has been active. In some instances, thecounter for these criteria is not reset when the consumer is migratedfrom one prepaid financial account to another and instead follow theconsumer to determine future account migration status.

Prepaid financial accounts of the present invention are of a variety oftypes that each have different account features and limitations. Forexample, some account types may be disposable and may not be reloadedwith funds, some account types may be limited to a set number ofreloads, and other account types may enable unlimited reloading offunds. Some account types may be used only with an ATM, while otheraccount types may be used with an ATM or to conduct credit cardtransactions. While the above features are given as examples, otheraccount features and limitations are fully contemplated, such as loadlimits, cash back incentive programs, etc. Various features andlimitations may be grouped together in a single account by an issuer toserve the needs of the consumer and/or the issuer.

Further to the varying account features described above, payment devicesassociated with the prepaid financial accounts of the present inventionmay be personalized (e.g., printed with the consumer's name) ornon-personalized. Non-personalized devices are useful for instant issuetransactions where the consumer must be issued a prepaid payment cardimmediately (e.g., upon termination of an employee as required by somestate laws).

Embodiments of the present invention enable the issuer to monitor theconsumer's behavior as it relates to the preset criteria for accountmigration. For example, the issuer may monitor the number of reloads theaccount has transacted, the total dollar amount loaded, or othercriteria, such as the frequency and amount of spending activity on theaccount and whether the account has been subject to fraud. Based on thisinformation, the issuer determines whether the triggers for accountmigration have been met. In some embodiments, each type of prepaidfinancial account may have a different set of criteria for triggeringaccount migration. For example, a payroll card account that is limitedto three reloads may be automatically migrated to another account whenthree reloads have been transacted, while a payroll card account thatalready enables unlimited reloads may require that a certain amountmoney be spent using the account before the account is migrated.

When the issuer migrates the prepaid financial account of a consumer,the issuer may not require any input or request from the consumer. Oncethe issuer determines that the trigger criteria has been met, the issuermay determine which type of account to migrate the consumer into (i.e.,which type of BIN should be assigned), create the new account number(i.e., assign the new BIN), and send the consumer a notification thatthe consumer's account is being migrated. The consumer's profileinformation is transferred to the new account such that any counterstracking the consumers behavior, biographical information, DDA numbers,etc. are copied to the new account. Since the DDA number associated withthe new account will remain the same as that of the old account, theloading of funds to the new account will be seamless and will not beaffected by the account migration. A new payment device may be orderedby the issuer, which may be delivered to the consumer, for example, bymail. The issuer may set the old account for closure, for example, whenthe new payment device is received and activated by the consumer orafter a set period of time has elapsed.

In some instances, the automatic account migration provided by thepresent invention may be understood as an “upgrade” program in which theissuer of the prepaid financial accounts sets criteria for migrating theconsumer from a “less desirable” type of account to a “more desirable”type of account that has more benefits/features and fewer limitations.For example, a consumer meeting a trigger criteria of having reloaded apayroll card account three times (i.e., meaning the consumer has beenemployed for three pay periods) may be upgraded from an initial accounthaving a preset limit on reloads and that is only usable at an ATM to anew account having no limit on reloads and that is capable of conductingcredit card transactions. In addition, the issuer may also send themigrated/upgraded consumer an upgraded payment device enabling the newaccount features and personalized with the consumer's name. As such, anemployee without a bank account may be upgraded, after meeting therequite criteria, from a limited function payroll account to anunlimited re-loadable, credit card transaction enabled payroll card thatessentially functions as an informal bank account. Moreover, theupgrade/migration process is automatic and reduces the requirements onthe issuer's resources.

Although the above discussion helps to illustrate the present invention,it should be understood that embodiments of the present invention enablemigration of the consumer from one prepaid financial account to another,which means that the consumer may also be migrated from a “moredesirable” type of account to a “less desirable” type of account if thetrigger criteria are met. For example, if a consumer's credit cardenabled account becomes victimized by fraud, the fraud trigger may causethe issuer to initiate an automatic migration of the consumer from thataccount to a limited reloadable, ATM-only card. As such, the issuer isprotected from further fraud, as the account number (i.e., BIN)associated with the consumer's account must now change frequently as theconsumer must obtain a new account when the reload limit has been met.Moreover, the ATM-only account only enables the consumer to engage inPIN verified transactions, which is less prone to fraud than credit cardtransactions.

In other instances, the consumer may simply be migrated to anotheraccount of the same type bearing a different account number (i.e., BIN),although the consumer may now be issued a personalized payment device,if a non-personalized device was initially issued. For example, apayroll card account that is limited to three reloads may beautomatically migrated to another account of the same type when threereloads have been transacted so as to enable the employee to continuereceiving pay.

In some embodiments, the amount of “upgrade” to be received by theconsumer may be determined by how many of the preset criteria are metand to what extent. That is, the types of accounts may be assignedrelative values and the issuer may determine how many levels to“promote” the consumer's account. For example, a consumer meeting moreof the preset criteria (e.g., having reloaded a number of times, spent acertain amount of money from the account) or meeting the criteria to ahigher level (e.g., having spent over $1,000 rather than over $500 fromthe account) may be migrated to a “more desirable” account than aconsumer meeting only one of the preset criteria and/or only meeting thecriteria at the lowest set level.

Although the specific examples that are described above and below relateto prepaid financial accounts in which funds are loaded into the accountprior to expenditure by the consumer, the concepts of the presentinvention are fully applicable to other types of financial accounts,such as credit card accounts, bank accounts, personal line of creditaccounts, etc. As such, the issuer of such financial accounts maydetermine preset criteria that automatically trigger the migration ofthe consumer from one type of account to another without requiring anyinput from the consumer. For example, the issuer may automaticallyupgrade the consumer from a low credit limit, high interest rate creditcard account into a high credit limit, low interest rate account, issuea new credit card to the consumer having the new account number, and setthe old account for closure.

FIG. 1 illustrates a system 20 that can be used in an embodiment of theinvention directed to payroll card accounts. The system 20 shown in FIG.1 illustrates one merchant, one acquirer, one employee, one employer,one portable consumer device (e.g., payroll card device), one issuer,and one payment processing network for simplicity of illustration. It isunderstood that embodiments of the invention may have more or lesscomponents than are shown in FIG. 1.

The system 20 includes an employer 31 that may be in operativecommunication with the issuer 28 of the payroll card accounts. Theemployer 31 may give the employee 30 a portable consumer device 32(e.g., a payroll card device) associated with a payroll card account inexchange for work performed, or may provide the portable consumer device32 with additional value in embodiments where the account is reloadable.The employer 30 may have an account with the issuer 28 and may directthe issuer to load additional value into the payroll card accountassociated with the portable consumer device 32.

The issuer 28 may have or operate a server computer 21 and a database23. As used herein, a “server computer” is typically a powerful computeror cluster of computers. For example, the server computer can be a largemainframe, a minicomputer cluster, or a group of servers functioning asa unit. In one example, the server computer may be a database servercoupled to a Web server. A server computer services the requests of oneor more client computers. The database 23 may contain employer accountinformation, portable consumer device identification data, pin data, andaccount data, and other information.

The monetary values associated with the payroll card accounts, theemployee's profile information associated with the payroll cardaccounts, the trigger criteria associated with each type of payroll cardaccount, may all be stored in database 23. The portable consumer devicesmay or may not store data representing the monetary values associatedwith the accounts. For example, the portable consumer device 32 maysimply comprise an identification number (e.g., an account number). Thisaccount number may be stored in the database 23 with the monetary value(e.g., $500) associated with the portable consumer device 32. In thisexample, data representing the monetary value (e.g., $500) would not bestored on the portable consumer device 32. In other embodiments, datarepresenting the monetary value associated with the portable consumerdevice 32 could be stored in a computer readable medium 32(a) of theportable consumer device 32.

The portable consumer device 32 may be in any suitable form. Forexample, suitable portable consumer devices can be hand-held and compactso that they can fit into a consumer's wallet and/or pocket (e.g.,pocket-sized). They may include smart cards, magnetic stripe cards,keychain devices (such as the Speedpass™ commercially available fromExxon-Mobil Corp.), etc. Other examples of portable consumer devicesinclude cellular phones, personal digital assistants (PDAs), pagers,payment cards, security cards, access cards, smart media, transponders,and the like.

The portable consumer device 32 may comprise a computer readable medium32(a) and a body 32(b). The computer readable medium 32(a) may be on thebody 32(b). The body 32(b) may in the form a plastic substrate, housing,or other structure. The computer readable medium 32(a) may be a memorythat stores data and may be in any suitable form. Exemplary computerreadable media 32(a) may be in any suitable form including a magneticstripe, a memory chip, etc. If the portable consumer device 32 is in theform of a card, it may have an embossed region ER 32(c) which isembossed with an account number and optionally the employee's name. Thecomputer readable medium 32(a) may electronically store the accountnumber as well as other data such as PIN data.

The system 20 also includes a merchant 22 and an acquirer 24 associatedwith the merchant 22. The merchant 22 may have an account at theacquirer 24, and therefore may be affiliated with the acquirer 24. Anissuer 28 may be in operative communication with the acquirer 24 via apayment processing network 26. The acquirer 24 is typically a bank thathas a merchant account. The issuer 28 may also be a bank, but could alsobe business entity such as a retail store. Some entities are bothacquirers and issuers, and embodiments of the invention include suchentities. Merchant 22 may have an account at the acquirer 24.

The merchant 22 may also have, or may receive communications from, anaccess device 34 that can interact with the portable consumer device 32.In FIG. 1, the access device 34 is located at the merchant 22. However,it could be located at any other suitable location in other embodimentsof the invention. Suitable merchants may include department stores, gasstations, drug stores, grocery stores, etc.

The access devices according to embodiments of the invention can be inany suitable form. Examples of access devices include point of sale(POS) devices, cellular phones, PDAs, personal computers (PCs), tabletPCs, handheld specialized readers, set-top boxes, electronic cashregisters (ECRs), automated teller machines (ATMs), virtual cashregisters (VCRs), kiosks, security systems, access systems, and thelike. Such access devices may send or receive data from the portableconsumer device 32 using any suitable contact or contactless mode ofoperation.

If the access device 34 is a point of sale terminal, any suitable pointof sale terminal may include a reader 34(a), a processor 34(b) and acomputer readable medium 34(c). The reader 34(b) may include anysuitable contact or contactless mode of operation. For example,exemplary card readers can include RF (radio frequency) antennas,magnetic stripe readers, etc. to interact with the portable consumerdevice 32.

The payment processing network 26 may include data processingsubsystems, networks, and operations used to support and deliverauthorization services, exception file services, and clearing andsettlement services. Payment processing network 26 may include a networksuch as VisaNet or may be a separate prepaid processing platform (PPP).In some instances, VisaNet may refer transactions involving prepaidfinancial accounts to the separate PPP for an authorization decision.Payment processing networks 26 may be able to able to process creditcard transactions, debit card transactions, and other types ofcommercial transactions. The payment processing network 26 may use anysuitable wired or wireless network, including the Internet.

Using the above described system, payroll card accounts may be loaded byan issuer 28 upon instruction by the employer 31, and the employee 30may use the issued portable consumer device 32 to enter into commercialtransactions with a merchant 22 via acquirer 24 and payment processingnetwork 26.

Some exemplary embodiments of the invention can be described withreference the flowchart in FIG. 2 and the system in FIG. 1.

As shown in FIG. 2, an employer 31 provides the employee 30 with aportable consumer device 32 (e.g., a payroll card) associated with apayroll card account that has been set up with trigger criteria foraccount migration (step 502). The portable consumer device 32 may havebeen created by the issuer 28 or provisioned by the issuer 28. Theemployee may then utilize the portable consumer device 32 to transactbusiness with merchants 22. The payroll card account associated withportable consumer device 32 may be periodically reloaded by employer 31.At step 504, the payroll card account activity is monitored by theissuer 28. Based on the account activity, the issuer determines that thetrigger criteria for account migration has been met at step 506. At step508, the issuer 28 then determines the new type of payroll card accountto be issued to the employee 30 based on the monitored account activityand creates the new account (which is assigned a new account number ofthe appropriate BIN type). At step 510, the issuer automaticallymigrates the employee's payroll account to the newly created account andtransfers the employee's profile information to the new account. Theemployee's profile information includes at least the DDA number used bythe employer 31 to direct funds into the employee's payroll cardaccount. At step 512, a new portable consumer device 32 associated withthe new account is issued to the employee 30, which may be embossed withthe employee's name in region 32(c). The old payroll card account maythen be closed. Finally, at step 514, employer 31 seamlessly loads fundsinto the new payroll card account, for example, using the DDA numbermigrated from the old payroll card account.

It should be understood that the present invention as described abovecan be implemented in the form of control logic using computer softwarein a modular or integrated manner. Based on the disclosure and teachingsprovided herein, a person of ordinary skill in the art will know andappreciate other ways and/or methods to implement the present inventionusing hardware and a combination of hardware and software

Any of the software components or functions described in thisapplication, may be implemented as software code to be executed by aprocessor using any suitable computer language such as, for example,Java, C++ or Perl using, for example, conventional or object-orientedtechniques. The software code may be stored as a series of instructions,or commands on a computer readable medium, such as a random accessmemory (RAM), a read only memory (ROM), a magnetic medium such as ahard-drive or a floppy disk, or an optical medium such as a CD-ROM. Anysuch computer readable medium may reside on or within a singlecomputational apparatus, and may be present on or within differentcomputational apparatuses within a system or network.

The above description is illustrative and is not restrictive. Manyvariations of the invention will become apparent to those skilled in theart upon review of the disclosure. The scope of the invention should,therefore, be determined not with reference to the above description,but instead should be determined with reference to the pending claimsalong with their full scope or equivalents.

One or more features from any embodiment may be combined with one ormore features of any other embodiment without departing from the scopeof the invention.

A recitation of “a”, “an” or “the” is intended to mean “one or more”unless specifically indicated to the contrary.

1. A method of automatically migrating a consumer between prepaidfinancial accounts, the method comprising: issuing a first prepaidfinancial account to a consumer, wherein the first account is associatedwith a profile of the consumer; setting trigger criteria for migratingthe consumer from the first account, wherein the trigger criteria isbased on account activity; monitoring the account activity to determinewhen the trigger criteria has been met; and automatically issuing asecond prepaid financial account to the consumer when the triggercriteria has been met and associating the profile with the secondaccount.
 2. The method of claim 1 wherein issuing a first and secondprepaid financial accounts comprises issuing payroll card accountsconfigured to be loaded by an employer.
 3. The method of claim 1 whereinassociating the profile with the second account comprises associating atleast a direct deposit account number of the consumer with the secondaccount.
 4. The method of claim 3 further comprising loading funds intothe second account using the direct deposit account number.
 5. Themethod of claim 1 wherein the profile comprises the consumer's name anda direct deposit account number associated with the consumer.
 6. Themethod of claim 1 wherein the first and second accounts have differentaccount numbers.
 7. The method of claim 1 further comprising issuing anew portable consumer device associated with the second account to theconsumer, wherein the new portable consumer device is embossed with anew account number different than that of the first account and theconsumer's name.
 8. The method of claim 1 further comprising determininga type of the second account based on a type of the first account. 9.The method of claim 1 further comprising determining a type of thesecond account based on a number of trigger criteria that have been met.10. The method of claim 1 further comprising determining a type of thesecond account by comparing the account activity to numerical levelsestablished in at least one trigger criterion.
 11. The method of claim 1wherein the first account is of a first type and the second account isof a second type, wherein each type of account includes a different setof features.
 12. The method of claim 11 wherein the first type ofaccount can only be reloaded a set number of times and the second typeof account is capable unlimited reloads.
 13. The method of claim 11wherein the first type of account can only be used at an ATM and thesecond type of account can also be used to conduct credit cardtransactions.
 14. The method of claim 1 wherein the first account is anaccount that can only be reloaded a set number of times and the triggercriteria is reloading the account the set number of times.
 15. Themethod of claim 1 wherein the trigger criteria comprise a number oftimes the account has been loaded, an aggregate amount of funds loaded,a frequency of spending activity, and an amount of spending activity.16. The method of claim 11 wherein the trigger criteria comprise a fraudalert and the second type of account has fraud prevention features. 17.The method of claim 16 wherein the fraud prevention features compriseenabling the account to transact only PIN verified transactions.
 18. Themethod of claim 16 wherein the fraud prevention features compriselimiting a number of reloads the account is allowed to transact.
 19. Acomputer readable medium comprising code for performing the method ofclaim
 1. 20. A server computer comprising the computer readable mediumof claim
 19. 21. A method of utilizing prepaid financial accounts, themethod comprising: receiving a first prepaid financial account from anissuer having a first account number, wherein the first account isassociated with a consumer profile; conducting financial transactions onthe first account; receiving a second prepaid financial account from theissuer having a second account number different than the first accountnumber based on account activity, wherein the second account isassociated with the consumer profile, and wherein the second accountpossesses upgraded account features; and conducting financialtransactions on the second account utilizing the upgraded accountfeatures.
 22. The method of claim 21 wherein conducting financialtransactions comprises receiving a direct deposit payment.
 23. Themethod of claim 21 wherein the upgraded account features comprise atleast one of an ability to conduct credit card transactions and anability to reload the second account an unlimited number of times. 24.The method of claim 21 wherein the consumer profile comprises a directdeposit account number.
 25. The method of claim 21 wherein conductingfinancial transactions on the second account comprises using a newportable consumer device associated with the second account.
 26. Themethod of claim 25, wherein the new device is embossed with at least aconsumer name.